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Working paper
Cátedra de sostenibilidad energética
Pere Mir-Artigues, Pablo del Río

2014/23 : Combining tariffs, investment subsidies and soft loans in a renewable electricity deployment policy

Policy combinations and interactions have received a considerable attention in the energy policy realm. The aim of our working paper is to provide insight on the cost- effectiveness of combinations of deployment instruments for the same technology. A financial model is developed for this purpose, whereby feed-in tariffs (FITs) and premiums (FIPs) are combined with investment subsidies and soft loans. The results show that combining deployment instruments is not a cost-containment strategy. However, combinations may lead to different inter-temporal distributions of the same amount of policy costs which can affect the social acceptability and political feasibility of renewable energy support.

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